Auto Industry: July sales see double-digit slump

Market leader Maruti Suzuki India (MSI) said its domestic sales were down 36.3% at 98,210 units last month compared to 1,54,150 units in July last year. It was in June 2017 that the company's sales had last fallen below 1 lakh units mark in a month.

Continuing to face rough weather, Maruti Suzuki, Hyundai and three other auto majors reported a double-digit decline in sales in July as consumer sentiment remained subdued.

Market leader Maruti Suzuki India (MSI) said its domestic sales were down 36.3% at 98,210 units last month compared to 1,54,150 units in July last year. It was in June 2017 that the company's sales had last fallen below 1 lakh units mark in a month.

The mini segment, comprising Alto and old WagonR, saw a massive slide of 69.3% to 11,577 units as against 37,710 units in the year-ago month. Similarly, the company's high selling compact segment, which includes models such as New WagonR, Celerio, Ignis, Swift, Baleno and Dzire, clocked 57,512 units sales in July as compared to 74,373 units in the same month last year, down 22.7%, it said. Sales of utility vehicles, including Ertiga, Vitara Brezza, S-Cross, were at 15,178 units in July as compared to 24,505 units in the year-ago period, down 38.1%.

Rival Hyundai Motor India Ltd (HMIL) reported a 10% dip in domestic sales at 39,010 units last month as against 43,481 units in July 2018.

Likewise, homegrown utility vehicle major Mahindra & Mahindra reported 16% decline in the domestic market at 37,474 units as compared with 44,605 units in July 2018.

The company's passenger vehicle segment, which includes utility vehicles, cars and vans, reported sales of 16,831 vehicles last month as against 19,781 units in the same period of 2018, a dip of 15%.

"The headwinds faced by the automotive industry continue as a result of subdued consumer sentiment, triggered by various factors," M&M Chief of Sales and Marketing, Automotive Division Veejay Ram Nakra said.

Honda Cars India Ltd (HCIL) reported 48.67% decline in domestic sales to 10,250 units in July as against 19,970 units in the year-ago period.

"The de-growth in the automobile industry further intensified last month amidst weak buying sentiment and overall slowdown. We are also witnessing a lot of postponement of purchases," Rajesh Goel, senior vice president and director (sales and marketing) at HCIL, said.

Similarly, Toyota Kirloskar Motor (TKM) said its domestic sales declined 24% to 10,423 units last month as compared with 13,677 units in July 2018.

"The industry is deeply concerned with the increasing pressure of low customer sentiment faced by the sector. The high insurance costs, rise in taxes and liquidity crunch across the non- banking finance segment, tightening of lending norms have significantly affected the domestic sales in the last few months," TKM Deputy Managing Director N Raja said.

In the two-wheeler space, Bajaj Auto saw its domestic sales dip 13% last month to 2,05,470 units as against 2,37,511 units in July 2018.

TVS Motor Company reported 15.72% decline in domestic two-wheeler sales at 2,08,489 units last month as against 2,47,382 units in July 2018. 

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